Wearables abandonment rates are not improving materially

May 2015

Recently, Endeavour Partners conducted its widest survey on abandonment rates for activity trackers and smartwatches.  We consciously conducted this survey prior to broader adoption of the Apple Watch as we anticipate that this product may achieve better results.  We had more than 4,700 respondents (U.S. consumers, 18 and over) who presently owned a modern smartwatch or activity tracker (of a total of 26,000 who took the survey).

Latest wearables abandonment data

While there has been some improvement in longer term abandonment rates (> 12 months), shorter term abandonment rates have not improved significantly over the past few years.  We attribute this to the fact that A, most of the devices being sold are activity trackers at this point, and B, while activity trackers have improved, their core value proposition hasn’t shifted dramatically in the last few years.  There are many people coming into possession of activity trackers who don’t stand to materially benefit from their core value proposition, which is centered around behavior change.   However, as employee wellness programs continue to take off, and additional layers of incentives get wrapped around the core activity tracker experience, we expect to see abandonment rates particularly around activity trackers start to improve.  As Apple enters this space, we expect to see Apple drive better abandonment rates than present smartwatch OEMs with Apple Watch.


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